Litecoin [LTC] displayed signs of a potential breakout, as significant bullish momentum emerged following the breach of a crucial trendline.
At the current trading price of $65.33, this breakout could potentially mark the beginning of a substantial upward trend, with potential price targets identified at $72, $82, $90, and $108, as highlighted in a post by crypto analyst Jonathan Carter on the X platform (formerly known as Twitter).
The recent breakout above the descending channel signifies a positive development in Litecoin’s price movement. However, the sustainability of this momentum in the upcoming days will heavily depend on technical analysis and on-chain metrics.
Is Litecoin’s network activity supporting the price surge?
Litecoin’s on-chain activity has demonstrated notable growth, with active addresses rising from 285,924 to 289,064 within a 24-hour period. This uptick in activity suggests an increasing interest in Litecoin, potentially bolstering the bullish price surge.
Despite this positive growth, on-chain metrics paint a slightly nuanced picture. While net network growth remains neutral at 0.34%, the concentration level, which reflects the actions of major holders, shows a slightly bearish stance at -0.27%.
This bearish concentration hints that some significant investors might be exercising caution, despite the rise in transactions and active addresses.
Do technical indicators signal further price gains?
Technical indicators for Litecoin offer a mixed but optimistic outlook. The Bollinger Bands indicate increased price volatility, with the current price hovering close to the upper band at $66.24.
This movement hints at a growing momentum towards an upward price surge. The Relative Strength Index (RSI) stands at 53.37, indicating mild bullish sentiment. If the RSI approaches overbought levels, it could confirm sustained momentum.
Furthermore, maintaining Litecoin’s price above the recent breakout level would reinforce the notion that the rally is more than just a temporary upsurge.
Crucial Levels to Monitor for Litecoin’s Future Movement
Following Litecoin’s successful break from its descending channel, several significant levels come into focus. If the current momentum persists, the first major resistance level will be at $72.
Subsequently, Litecoin could potentially surge towards $82, $90, and $108, based on past trends and technical forecasts.
While Litecoin’s recent price surge and network activity signal the potential for further growth, traders and investors must remain vigilant. Monitoring both technical indicators and on-chain metrics will be pivotal in confirming the sustainability of this bullish momentum.